Latest news with #CasparCoppetti
Miami Herald
21-05-2025
- Business
- Miami Herald
On sneakers is tapping into a market Nike missed
There's a new name showing up in high-end gyms, on run club routes, and across your Instagram feed - and it's not Nike. This brand doesn't rely on hype drops or retro reissues. Instead, it's leaning into sleek design, technical performance, and premium pricing. Related: Nike rival hits sneaker giant where it hurts It's become the go-to for a growing class of consumers who prioritize performance and style over flash. Don't miss the move: Subscribe to TheStreet's free daily newsletter And while On sneakers may cost more, fans say they're worth every cent. And now, the numbers back it up. This under-the-radar sneaker company just posted earnings that prove it's not just a trend. It's capturing a growing, premium market. Image source: On Swiss sneaker brand On Holding AG (ONON) reported a 40% constant-currency sales jump in Q1 2025, reaching CHF 726.6 million (about $870.8 million). That growth came from all fronts: Asia-Pacific sales exploded 128.9%, apparel sales nearly doubled, and direct-to-consumer (DTC) revenue jumped 42.4%. On's most recent launches, the Cloudsurfer 2 and Cloud 6, are winning over elite athletes and everyday fitness fans alike. Related: Popular sneaker company raising prices The minimalist, tech-forward aesthetic is clearly resonating: its gross margin held near 60%, with adjusted EBITDA up nearly 55%. Co-founder Caspar Coppetti said the brand is thriving by "combining performance and design with a constant thirst for innovations big and small." While Nike continues to dominate in volume, On is carving out space where it counts: high-income, high-loyalty shoppers. These are customers willing to pay more for gear that performs better and looks good doing it. On's shoes are increasingly seen on trainers, influencers, and fitness-forward professionals who shape what people buy. It's a segment Nike has historically served but maybe taken for granted. On's sharp DTC growth and rising global demand suggest the brand has hit a nerve. The company now expects full-year net sales to rise at least 28%, despite supply chain challenges and rising tariffs. With margins holding and momentum building, On is proving that premium isn't just a price point - it's a strategy. On isn't trying to be Nike. It's trying to be better. Related: Veteran fund manager unveils eye-popping S&P 500 forecast The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Miami Herald
17-05-2025
- Business
- Miami Herald
Popular sneaker company raising prices
You've probably seen them everywhere - on runners, at the gym, and even in the office. Sleek and futuristic-looking with a distinct bouncy sole, these sneakers have become a quiet status symbol. Related: Oprah just cut Nike from the team But if you asked most people to name the brand, you'd probably get a lot of shrugs. Don't miss the move: Subscribe to TheStreet's free daily newsletter This brand is ready to change that. Despite facing global economic pressures, trade policy shifts, and a major executive shakeup, this fast-growing athletic company just posted blowout quarterly results - and it's using the moment to double down on its premium image by raising prices in the U.S. Image source: On On (aka On Cloud) didn't just beat estimates - it soared past them. The brand reported Q1 net sales of 726.6 million Swiss francs (about $863 million), up 43% year over year. Gross profit rose 43.5% to 435.3 million francs. Direct-to-consumer sales surged 45.3% and now represent over a third of total revenue. Wholesale channel sales climbed 41.5%, and apparel sales nearly doubled to 38.1 million francs. Co-founder Caspar Coppetti said On is focused on what sets it apart: high-performance gear that doesn't compromise on style. That positioning has earned the company what it calls "pricing power," and now it plans to use it. Related: Nike troubles mount amid huge C-suite shakeup Starting this July, On (ONON) will raise U.S. prices on select styles as part of its upcoming fall-winter collection. The company made one thing clear: these price hikes aren't about tariffs. They're about brand power. On wants consumers to see the increase as a reflection of its elevated status, not economic pressure. It's a bold move - and one that signals just how confident On is in the brand it's built. The confidence doesn't stop with pricing. While many companies are racing to discount or slow expansion amid macro uncertainty, On is betting big on its premium play. "As we solidify our premium positioning in the marketplace, we will continue to focus on what differentiates us - combining performance and design with a constant thirst for innovations big and small," said Executive Co-Chairman Caspar Coppetti in the company's press release. With a 90-day pause on U.S. tariffs in effect, On says its updated guidance already accounts for new duties. Leadership changes are underway, too. Co-CEO Marc Maurer is stepping down in June after 12 years. Martin Hoffmann will become sole CEO, with new C-suite hires across innovation, supply chain, and people operations stepping in over the coming months. But On isn't slowing down - it's sending a clear signal to the market: performance, design, and premium status are worth paying for. Related: Veteran fund manager unveils eye-popping S&P 500 forecast The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Yahoo
17-05-2025
- Business
- Yahoo
Swiss running brand On became $3 billion richer in the last week. It's coming for Nike and Adidas next
Sitting in their Zurich headquarters, On's sanguine co-CEO, Martin Hoffmann, and his colleague and On co-founder Caspar Coppetti, have reason to be relaxed. Another quarter of unexpected growth has notched another $3 billion to their brand's value. There is an elephant in the room, however. It's not taking up much room though, given the elephant is a newly-empty seat at the CEO table. Hoffmann will soon take on the role of On's CEO alone when his co-CEO Marc Maurer leaves the company in June. Maurer said he planned to embark on a 'new chapter' in his professional life after more than 14 years at the company. Maurer and Hoffmann both joined On from Swiss food retailer Valora in 2012 and 2013, respectively, as COO and CFO, with Maurer wooing his friend over to what was then a little-known running startup. The pair has operated as co-CEOs since 2021. From July, though, Hoffmann, a financial whizz by trade and by nature, will take the reins of On alone, without Maurer to lean on. 'I had a really strong relationship with Marc and a deep, deep friendship,' Hoffmann told Fortune following the release of On's first-quarter earnings. 'I will miss that, but we have been super close, basically in all parts of the business, together with different focuses. But there are no blind spots, and we are not changing strategy.' Hoffmann, whose priority will shift from his current dual role as CFO, admits he loves numbers as much as he does people. For a company better known for design, innovation, and cool collaborations with Gen Z idols, finance will need to take a backseat. 'The strength of On is not the numbers, it's the team,' said Hoffmann. 'My goal was to enable this team to be at their best. And I don't think this changes. The focus from where I do it will change, but the perspective stays the same.' Hoffmann could hardly take sole charge of On in a better position. On Tuesday, the group reported a 43% surge in revenue in the first quarter of 2025 compared with a year earlier, while it increased its revenue and profitability guidance for the rest of the year. The last quarter marked the second in a row that On beat its revenue expectations. New brand partnerships, including a February Super Bowl advertisement featuring tennis great and On investor, Roger Federer, and Elmo, have helped the company defy short-run expectations within a wider goal of doubling sales between 2023 and 2026. On wrapped up its earnings week by hitting a record valuation of $19.65 billion as investors piled into the running brand in the wake of the surprise results, having started the week valued at around $16 billion. On is now the third most valuable publicly traded footwear brand in the world behind Nike and Adidas. The group's surge has come as those legacy sportswear companies have regressed. Shares in Nike have plunged more than 15% since the start of the year, while Adidas shares have fallen more than 8%. On, meanwhile, has risen in value by 8% this year. With a current running shoe market share of around 10%, the company's leadership is laser-focused on driving this even higher. 'Our long-term vision is to be the number one brand in running,' Coppetti told Fortune. Getting to the mantle of the number one running brand certainly looks a lot more realistic now than when its co-founders first started experimenting with strapping hose pipes to the bottom of traditional running shoes. It is, however, a different path from the one that brought On to this point. On evolved as a challenger brand largely through word-of-mouth marketing and an opportunistic boom in running among younger people, whose higher disposable income, social media awareness, and newfound focus on fitness have proved a goldmine for the athletic brand. 'I think we're benefiting from this health and wellness trend where younger adults… they're going to the gym rather than going to the bar,' said Coppetti. The group's successful partnership with Zendaya hasn't hurt its appeal with young customers either. 'We're quite obsessed,' Coppetti says about continuing to enhance On's brand recognition. The company has been forensic in transitioning from an online model to erecting physical stores, considering exactly where to place each of its 53 stores, right down to the street corner, to maintain its exclusivity while growing. 'We don't want to overshoot, and that allows us to, for example, be very selective with retail partners we want to work with, or which stores we want to be in, which street, which corner of that street we want to have our store on and it all feeds into this premium positioning,' says Coppetti. On's two London stores exemplify that strategy, with one located on the exclusive Regent's Street, and the other in the trendy east-side shopping zone of Spitalfields. Coppetti notes some 200 people take part in a run club from that store regularly. You can be pretty confident that an On rep will make an undercover appearance at other run clubs, too. 'We actually go out and we go to the major running routes in the big cities, and we go and count people, and we see what products they are wearing, both footwear and apparel,' Coppetti said. The company does the same at running events. On gets more cut through among short distance runners, up to half marathon distances. It's hoping to grab more marathon runners when it launches its 'super shoes' later this year. There will be other challenges along the way. Still a nascent brand, On hasn't yet proved it can ride out demand dips and move beyond fears that it is a 'fad' shoe. And despite having operations in the U.S., the Swiss brand is no less exposed to tariffs than its competitors. Still, On is planning price increases this year, unrelated to tariffs, and CEO Hoffmann thinks customers are ready to stay on the ride, however bumpy things get. 'We want to be the most premium global sports brand, and premium is the decisive word here,' Hoffmann says. 'And if you are clear about the North Star, we actually have clear direction in kinds of uncertainties like this.' This story was originally featured on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
17-05-2025
- Business
- Yahoo
Swiss running brand On became $3 billion richer in the last week. It's coming for Nike and Adidas next
Sitting in their Zurich headquarters, On's sanguine co-CEO, Martin Hoffmann, and his colleague and On co-founder Caspar Coppetti, have reason to be relaxed. Another quarter of unexpected growth has notched another $3 billion to their brand's value. There is an elephant in the room, however. It's not taking up much room though, given the elephant is a newly-empty seat at the CEO table. Hoffmann will soon take on the role of On's CEO alone when his co-CEO Mark Maurer leaves the company in June. Maurer said he planned to embark on a 'new chapter' in his professional life after more than 14 years at the company. Maurer and Hoffmann both joined On from Swiss food retailer Valora in 2012 and 2013, respectively, as COO and CFO, with Maurer wooing his friend over to what was then a little-known running startup. The pair has operated as co-CEOs since 2021. From July, though, Hoffmann, a financial whizz by trade and by nature, will take the reins of On alone, without Maurer to lean on. 'I had a really strong relationship with Mark and a deep, deep friendship,' Hoffmann told Fortune following the release of On's first-quarter earnings. 'I will miss that, but we have been super close, basically in all parts of the business, together with different focuses. But there are no blind spots, and we are not changing strategy.' Hoffmann, whose priority will shift from his current dual role as CFO, admits he loves numbers as much as he does people. For a company better known for design, innovation, and cool collaborations with Gen Z idols, finance will need to take a backseat. 'The strength of On is not the numbers, it's the team,' said Hoffmann. 'My goal was to enable this team to be at their best. And I don't think this changes. The focus from where I do it will change, but the perspective stays the same.' Hoffmann could hardly take sole charge of On in a better position. On Tuesday, the group reported a 43% surge in revenue in the first quarter of 2025 compared with a year earlier, while it increased its revenue and profitability guidance for the rest of the year. The last quarter marked the second in a row that On beat its revenue expectations. New brand partnerships, including a February Super Bowl advertisement featuring tennis great and On investor, Roger Federer, and Elmo, have helped the company defy short-run expectations within a wider goal of doubling sales between 2023 and 2026. On wrapped up its earnings week by hitting a record valuation of $19.65 billion as investors piled into the running brand in the wake of the surprise results, having started the week valued at around $16 billion. On is now the third most valuable publicly traded footwear brand in the world behind Nike and Adidas. The group's surge has come as those legacy sportswear companies have regressed. Shares in Nike have plunged more than 15% since the start of the year, while Adidas shares have fallen more than 8%. On, meanwhile, has risen in value by 8% this year. With a current running shoe market share of around 10%, the company's leadership is laser-focused on driving this even higher. 'Our long-term vision is to be the number one brand in running,' Coppetti told Fortune. Getting to the mantle of the number one running brand certainly looks a lot more realistic now than when its co-founders first started experimenting with strapping hose pipes to the bottom of traditional running shoes. It is, however, a different path from the one that brought On to this point. On evolved as a challenger brand largely through word-of-mouth marketing and an opportunistic boom in running among younger people, whose higher disposable income, social media awareness, and newfound focus on fitness have proved a goldmine for the athletic brand. 'I think we're benefiting from this health and wellness trend where younger adults… they're going to the gym rather than going to the bar,' said Coppetti. The group's successful partnership with Zendaya hasn't hurt its appeal with young customers either. 'We're quite obsessed,' Coppetti says about continuing to enhance On's brand recognition. The company has been forensic in transitioning from an online model to erecting physical stores, considering exactly where to place each of its 53 stores, right down to the street corner, to maintain its exclusivity while growing. 'We don't want to overshoot, and that allows us to, for example, be very selective with retail partners we want to work with, or which stores we want to be in, which street, which corner of that street we want to have our store on and it all feeds into this premium positioning,' says Coppetti. On's two London stores exemplify that strategy, with one located on the exclusive Regent's Street, and the other in the trendy east-side shopping zone of Spitalfields. Coppetti notes some 200 people take part in a run club from that store regularly. You can be pretty confident that an On rep will make an undercover appearance at other run clubs, too. 'We actually go out and we go to the major running routes in the big cities, and we go and count people, and we see what products they are wearing, both footwear and apparel,' Coppetti said. The company does the same at running events. On gets more cut through among short distance runners, up to half marathon distances. It's hoping to grab more marathon runners when it launches its 'super shoes' later this year. There will be other challenges along the way. Still a nascent brand, On hasn't yet proved it can ride out demand dips and move beyond fears that it is a 'fad' shoe. And despite having operations in the U.S., the Swiss brand is no less exposed to tariffs than its competitors. Still, On is planning price increases this year, unrelated to tariffs, and CEO Hoffmann customers are ready to stay on the ride, however bumpy things get. 'We want to be the most premium global sports brand, and premium is the decisive word here,' Hoffmann says. 'And if you are clear about the North Star, we actually have clear direction in kinds of uncertainties like this.' This story was originally featured on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Fast Company
16-05-2025
- Business
- Fast Company
On doesn't want to be the next Nike—and it's working
On Running has hit 2025 at full speed, reporting Q1 earnings on Tuesday that saw the company grow sales by 43% year-over-year. It's a reflection of the overall growth trajectory the Zurich-based athletic lifestyle brand has been on since it launched in 2010. With a healthy direct-to-consumer business, growing retail footprint (with 53 stores around the world), and cutting edge product innovation, On has built its brand around its product quality and sleek, simple design. But cofounder and executive cochairman Caspar Coppetti says that despite the healthy numbers, the brand still has plenty of room to grow, and it's using its own unique combination of culture and athletics to do it. 'Our global brand awareness last year was only 20%, while Nike is at 95%,' says Coppetti. 'We're not trying to be the next Brand X or Brand Y. We're writing our own script, and that script is: We want to be the most premium brand in sports, really elevating the whole brand experience.'
